Wednesday, February 19, 2025
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HomeConversationsUninterrupted utility- energy supply key to retaining Textile for 2025

Uninterrupted utility- energy supply key to retaining Textile for 2025

The year 2024 proved to be one of the most challenging for Bangladesh’s textile industry, with political unrest, natural disasters, and energy crises severely impacting the sector’s performance. Despite these setbacks, the industry showed resilience, laying the groundwork for potential recovery in the coming years.

Mahbub Khan Himel Director of Mithela Textile Industries Ltd edited
Figure: Mahbub Khan Himel, Director of Mithela Textile Industries Ltd.

Political instability dominated much of 2024, beginning with anti-government protests in mid-year that escalated into widespread unrest.

Textile and garment industry of Bangladesh is a vital pillar of its economy that accounts for over 80 per cent of the country’s total export earnings and contributes approximately 11 per cent to the GDP. The industry employs millions of people. The sector faced a severe crisis due to a volatile mix of political unrest marked by violent protests, and catastrophic floods in August. The situation threatened to unravel the years of growth and global presence of the sector.

From June 2022, rising energy costs and interruption in gas supply resulted in as high as a 50% production drop in many factories and pushed up the costs of production.

According to BTMA, due to the current crisis, around 14 largest textile mills closed the factory due to power supply, liquidity crisis and bank issues etc.

Apart from political and labour unrest, the perennial power and energy crisis severely impacted investment inflow into the sector. As a result, many jobs could not be created in the sector this year.

Looking ahead, I believe we have the potential for qualitative changes as we diversify our product lines and explore new markets.

While I am optimistic that 2025 will mark a significant comeback for the global economy and our apparel business, I sincerely hope our nation overcomes the ongoing crises, particularly the challenges within the banking and financial sectors. Achieving sustainable improvements in industrial relations and establishing stable political and economic reforms are essential for restoring our confidence.

increasing prices of utilities and energy could dilute the low-cost advantage of doing business in Bangladesh particularly for manufacturers with high energy consumption, which is the case of technical textiles.

Finally said Now is the time to work together with all the good entrepreneurs. The government should support and make a good policy for Honest entrepreneurs and ensure support from Bank, Custom,NBR,Bond fatalities for further economy next level growth. Politics and Business should eye different frames. True Businessmen work for a country not political power.

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